The solar energy industry is facing a volatile market in the short term due to the fluctuations in prices of materials and components. While polysilicon prices skyrocketed after suppliers limited market supply, wafer and cell prices followed suit due to tightening supply. However, with the expansion of polysilicon supply and the release of new wafer production capacity, prices are expected to come back down to the usual range.
As module prices fall, installation demand is expected to rise, leading to a peak season for installations arriving earlier than usual. Nevertheless, the industry chain may still experience sharp price fluctuations in the short term, particularly due to government policies.
Despite the challenges, the solar energy industry is poised for growth in the long term as the world shifts towards renewable energy sources.
PV Industry Short Glossary
- Polysilicon – a highly pure form of silicon used in the production of photovoltaic (PV) cells and other electronic devices.
- PV wafers – thin slices of silicon used as the base for manufacturing PV cells.
- PV cells – the main component of PV modules that convert sunlight into electricity.
- PV modules – panels made up of multiple PV cells that are used to generate electricity from solar energy.